A credit report
contains a lot of valuable information such as credit accounts you've opened, loan
amounts, balances, and payment habits. It also includes information about
any bankruptcies, liens, and any collection agency attempts to collect past due
funds.
One good reason you should monitor your credit
report is to check it for errors. CBS News reports that four out of
five credit reports
have errors on them. Errors can range anywhere from name misspellings and
incorrect Social Security numbers to accounts being listed as still open when in
fact they have been closed - an error that can hurt you when you need to get a loan
or mortgage. Mistakes can also come if one of your creditors is reporting
incorrect information. If your
credit report has errors, they should be corrected as soon as possible.
Get tips on how to improve your
credit score.
But probably the best reason you should monitor your
credit report is to make sure you haven't fallen victim to
identity theft
or fraud. Identity theft is becoming so much more prevalent these days - the
Better Business Bureau reports that in 2005, 9.3 million people were victims of
identity theft. Checking your credit
report can help you find out if your personally identifying information such
as your name, address, birth date, account numbers, and Social Security number has
been compromised.
Thanks to Federal law, everyone is now entitled to one free copy of their credit
report per year from each of the three credit reporting bureaus: Equifax, Experian,
and TransUnion. To do this, you must visit
AnnualCreditReport.com.
It's important to know that your information is being bought and sold everywhere
- it's why you receive so many pre-approved credit offers in the mail. In
order to reduce the chances of becoming a victim of identity theft, visit
www.optoutprescreen.com or call 800-5-O-P-T-O-U-T (800-567-8688) to have
your name removed from marketing mass distribution lists. You can be opted
out for five years or permanently. It may take up to 30 days, but you should
soon see a reduction in the amount of junk mail you receive.
If you've already fallen victim to identity theft, your credit history and score
can be damaged, sometimes seriously. That, in turn, can hurt your chances
of getting better loans and mortgages. If your identity has been compromised,
file a report with the Federal Trade Commission (FTC) and with your local police.
They can help you resolve your case so that you can begin to repair your credit
profile. For more information on how to do this, please go to
www.consumer.gov/idtheft.
Your credit information is highly valuable both to you and to those who would commit
fraud for their own profit. Protect yourself by keeping a close eye on where
your information goes and on the information contained in your
credit report.
Why Should I Monitor My Credit Report?
Credit reporting is usually done by Equifax, TransUnion and Experian,
the three official agencies and they get the data by monitoring your transactions.
However, it is important that you make the effort of doing that yourself too
and this could save you a lot. Having your
credit report monitored is the best way to manage your credit cards information.
This can be done by an online company that has a suitable program to monitor all
the reports from the three credit reporting agencies. Usually, you have to
sign up for the monitoring service and you can benefit from other services as well
once you are a subscriber such as a free monthly report.
Monitoring is important since it helps
you to find and take care of errors and omissions in time. Errors might come
about as a result of
identity theft whereby someone else is using your credit card.
By looking at your reports regularly, you can know quickly which transaction is
appearing that you did not carry out. You can then determine how it happened
because, unless it is included by mistake by the agency, it must have been carried
out by someone.
This service will also ensure that you always have accurate information showing
especially when you are planning to get another loan or trying to find employment.
You might be missing out on many job opportunities simply because your report has
incorrect data. You can also know from your
credit score what chances you have of getting a loan from any of the lenders
available.